...1. A business owned by a single individual is called a: a) corporation. b) sole proprietorship. c) general partnership. d) limited partnership. e) limited liability company. 2. The decisions made by financial managers should all be ones which increase the: a) size of the firm. b) growth rate of the firm. c) marketability of the managers. d) market value of the existing owners' equity. e) firm’s current sales. 3. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a firm to create value it must: a) have a greater cash inflow from its stockholders than its outflow to them. b) create more cash flow than it uses. c) reduce its investment in fixed assets since fixed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales...
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...1. A business owned by a single individual is called a: a) corporation. b) sole proprietorship. c) general partnership. d) limited partnership. e) limited liability company. 2. The decisions made by financial managers should all be ones which increase the: a) size of the firm. b) growth rate of the firm. c) marketability of the managers. d) market value of the existing owners' equity. e) firm’s current sales. 3. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales and net earnings. 4. Accounting concepts for a firm to create value it must: a) have a greater cash inflow from its stockholders than its outflow to them. b) create more cash flow than it uses. c) reduce its investment in fixed assets since fixed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of financial management is to: a) maximize current dividends per share of the existing stock. b) maximize the current value per share of the existing stock. c) avoid financial distress. d) minimize operational costs and maximize firm efficiency. e) maintain steady growth in both sales...
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...Furniture Store Scenario Week 1 Mr. Guillermo owns a custom furniture business in Sonoran, Mexico. Supply and labor were relatively inexpensive in that area. Guillermo suffered a large decrease in business in the late nineties due to two new competitors entering the market and the local economy rapidly growing causing a spike in the cost of labor. To help with his loss, Guillermo research his competitors both foreign and domestic to see how he could help alleviate rising costs. Concept from Week’s 1 reading Guillermo applied different financial concepts in assessing his situation and while developing a variety of solutions to sustain the future of his business. Noticing the decrease in his sales, he thought to first look at his competition to see how they were handling the changes to the economy. Looking from guidance from other companies in the similar situations is referred as the behavioral concept. Using the information gathered from his research, Guillermo acknowledges what the competition is doing but also looking at the opportunity costs associated for his business and him personally if he decides to go in the same direction. His competitors are consolidating into larger companies which could result in higher overhead costs and more managerial responsibility. The opportunity cost is he stays independent than his overhead costs will not change as much and it will not interfere with his time personal. Guillermo also researched foreign competitors for additional ideas...
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...1. If the Hunter Corp. has an ROE of 13 and a payout ratio of 30 percent, what is its sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate ____% 2. The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 6,700 Assets $22,050 Debt $ 8,050 Costs 3,850 Equity 14,000 Net income $ 2,850 Total $22,050 Total $22,050 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $7,906. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) External financing needed $_____ 3. Projected future financial statements are called: • plug statements. • pro forma statements. • reconciled statements. • aggregated statements. • comparative statements. 4. One of the primary weaknesses of many financial planning models is that they: • rely too much on financial relationships and too little on accounting relationships. • are iterative in nature. • ignore the goals and objectives of senior management. • ignore cash payouts to stockholders. • ignore the size, risk, and timing of cash flows. 5. The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is bestdefined by its: • rate of...
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...1. Sankey, Inc., has current assets of $5,000, net fixed assets of $23,000, current liabilities of $3,500, and long-term debt of $7,900. (Do not round intermediate calculations.) What is the value of the shareholders' equity account for this firm? Shareholders' equity $_________ How much is net working capital? Net working capital $_________ 2. Which one of these accounts is classified as a current asset on the balance sheet? • intangible asset • accounts payable • preferred stock • inventory • net plant and equipment Complete FIN 571 week 2 connect problems Answers here FIN 571 Week 2 Connect Problems 3. It is easier to evaluate a firm using its financial statements when the firm: • is a conglomerate. • is global in nature. • uses the same accounting procedures as other firms in its industry. • has a different fiscal year than other firms in its industry. • tends to have one-time events such as asset sales and property acquisitions. 4. The cash flow resulting from a firm's ongoing, normal business activities is referred to as the: • operating cash flow. • net capital spending. • additions to net working capital. • cash flow to retained earnings. • cash flow to investors. FIN 571 final exam (Newest) download now FIN 571 Final Exam (Newest) 5. Which one of these is a non-cash item? • depreciation • interest expense • current taxes • dividends • selling expenses 6. Sankey, Inc., has current assets of $5,000, net fixed assets of $23,300, current...
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...FIN 571 Week 4 Connect Problems – Assignment 1. Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 11 years Coupon rate: 9 percent Semiannual payments Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Price of the Bond a. 9 percent $ _____ b. 11 percent $ _____ c. 7 percent $ _____ 2. Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.4 percent. The bonds make semiannual payments. If these bonds currently sell for 90 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM _____ % 3. Grand Adventure Properties offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 8 years from today. What is the market price of this bond if the face value is $1,000? • $1,071.84 • $788.73 • $1,082.17 • $1,019.29 • $947.45 4. The next dividend payment by ECY, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent, forever. The stock currently sells for $31 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Required return _____ % 5. The Starr Co. just paid a dividend...
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...1. The difference between the present value of an investment?s future cash flows and its initial cost is the: • net present value. • internal rate of return. • payback period. • profitability index. • discounted payback period. 2. Which statement concerning the net present value (NPV) of an investment or a financing project is correct? • A financing project should be accepted if, and only if, the NPV is exactly equal to zero. • An investment project should be accepted only if the NPV is equal to the initial cash flow. • Any type of project should be accepted if the NPV is positive and rejected if it is negative. • Any type of project with greater total cash inflows than total cash outflows, should always be accepted. • An investment project that has positive cash flows for every time period after the initial investment should be accepted. Find the Week 1 Connect Problems answers here FIN 571 Week 1 Connect Problems 3. The primary reason that company projects with positive net present values are considered acceptable is that: • they create value for the owners of the firm. • the project's rate of return exceeds the rate of inflation. • they return the initial cash outlay within three years or less. • the required cash inflows exceed the actual cash inflows. • the investment's cost exceeds the present value of the cash inflows. 4. Accepting a positive net present value (NPV) project: • indicates the project will pay back within the required period of time. • means...
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... Email Embed Like Save Fin 571 week 6 furniture store recommendation cash per forma 1 of 2 Fin 571 week 1 Fin 571 week 1 It 284 week 2 discussion question 1 Mgt 380 week 1 discussion 1 Mgt 380 week 4 discussion 1 Ad by SelectionLinks | Close Recommended More from User Fin 571 week 1 Fin 571 week 1 jennalden 471 views Fin 571 week 1 Fin 571 week 1 jennalden 471 views It 284 week 2 discussion question 1 It 284 week 2 discussion question 1 brigbarwason1977 1,047 views Mgt 380 week 1 discussion 1 Mgt 380 week 1 discussion 1 silkpitaha1979 929 views Mgt 380 week 4 discussion 1 Mgt 380 week 4 discussion 1 blinanaham1976 1,218 views Cmgt 445 week 4 d qs Psy 350 week 4 dq 2 eating disorders Fin 571 week 6 furniture store recommendation cash per forma 928 views rongeserre1970 rongeserre1970 (3 SlideShares) + Follow...
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...FIN 571 WEEK 4 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=fin-571-week-4 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION FIN 571 Week 4, The XYZ Company Inc. has decided to launch a product line. The company plans to introduce 2-3 varieties of the product line over the next 5 years. Due to the new initiative the firm expects the sales to increase by 20% within years 1-3 and sales will slow down to 10% from that point. Management feels the total cost of sales will increase from 60.% to 65% in the first 3 years by following a push strategy. The first three years will result in high inventory, purchases and production costs. With learning curve the firm is confident of bringing down the Cost of Sales to 60% from Year 4 onwards. To support growth, XYZ Company Inc. plans to invest strongly in net fixed assets as the current capacity utilization is close to 85%. Net cash flow generated by the company can also be used to retire long term debt by 10% every year. Furthermore, the company wants to keep minimum cash balance of $20,000 to ensure short term liquidity is healthy. Projections indicate that accounts receivable will reduce to 60 in first 3 Years and total sales will increase. The impact of the initiative and the Working Capital requirements are as shown below The operating margin will slowly improve to 22.3% by the end of Year 5. The XYZ Company Inc. has decided to launch a product line. The company plans...
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...FIN 571 WEEK 6 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=fin-571-week-6 Visit Our website: http://hwsoloutions.com/ Product Description FIN 571 Week 6, FIN 571 Week 6 complete Working Capital Simulation Introduction Strategic planning in the capital budget of a business is critical for new and mature businesses. Finance professionals, internal, and external users have to be able to dissect the information provided from a company’s financial statements in order to make investment decisions. The Harvard Simulation on working capital allowed the team to manipulate different financial profiles in order to forecast operational efficiency. Working capital is calculated by subtracting current assets from current liabilities. The team’s recommendations are based in three phases for the development of the company for the next 10 years. Phase 1 Decision During phase one the company decided to use a controlled approach in an attempt to gain working capital. The focus is to increase growth rate and current cash flow. First, the CEO’s decided to Leverage Supplier Discount. The company leveraged the supplier discount in order to allow the company to grow and build relationships within the market matrix; however, this caused a negative impact on accounts receivable and inventory balances causing a drain on the cash flow. Secondly, we declined Acquire a New Customer. Theoretically, acquiring Atlantic Wellness as a new customer would have increased sales...
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...A++PAPER;http://www.homeworkproviders.com/shop/fin-571-week-6/ FIN 571 WEEK 6 Week 6: Managing Financial Growth Resources: Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment Ch. 1 – 21 of Fundamentals of Corporate Finance WileyPLUS Assignments All additional resources from each week Review the following scenario: Acting as the CEO of a small company, you will apply the principles of capital budgeting to invest in growth and cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working capital. Examples of opportunities include taking on new customers, capitalizing on supplier discounts, and reducing inventory. You must understand how the income statement, balance sheet, and statement of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm’s financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Sign-in to the simulation and review each of the following: Welcome Statement How to Play Terminology Primer More Details (this includes information to help you understand how to play the simulation) Write a paper of no...
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...Fin571 Week 5 Problem Sets Lamar September 19, 2010 FIN/571 University of Phoenix Denny Frischkorn Week 5 Text Problem Sets Exercises Chapter 17 B1: (Choosing Financial... Save Paper Eco561 Week 1 quantity supplied on a fixed supply curve, during the pre-Superbowl weeks, there is a spike in the demand and quantity supplied as consumers are readying for the big... Save Paper International Corporate Finance/Fin Gm571 Week 3 The current credit terms dictates 15% upon purchase and 85% the following week (Emery, Finnerty, & Stowe, 2007). As valuable a customer who LS is to Murray, LS... Save Paper Week 2 Checkpoint Xeco212 iPad within hours, and retailers werent replenished for weeks because the demand was too high for production. So when they did this, they didnt have a significant... Save Paper Hca230 Week 1 Assignment HCA230 Week 1 Assignment Today Managed Care is the most predominant form of insurance in the United States. Insurances such as PPO, POS, and HMO plans are all... Save Paper Two Weeks With The Queen courage and prejudice expressed in a very realistic way that we can relate to. Two Weeks with the Queen gives the reader a sense of reality. In the beginning... Save Paper Week 5 Qnt/561 show that the production rate at the Scranton Plant has changed from 200 per week. The Two Sample Test of Hypothesis The two- sample hypothesis testing... Save Paper TraInIng In Acc point around which a learning organization may develop. The training program...
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...Text Problem Sets - Week Two Vaughan Thompson FIN/571: Corporate Finance April 22, 2013 Text Problem Sets: FIN/571 - Week Two Chapter Five Question # 4 Define the following terms: bond indenture, par value, principal, maturity, call provision, and sinking fund. Bond indenture. Bond indenture is a legal contract for a publicly traded bond. The structure of this contract outline incentives explicitly by detailing responsibilities, constraints, penalties, and oversight required. For example, contracts may specify interest and principal payment timing and amounts. Par value. Par value denotes face value or designated value of a bond or stock. Par value of a bond is typically $1,000 and the sum investors pay upon issue. It is also the sum received when they redeem the bond matures. Conversely, stock par value is frequently set at $1. In this case, par value is an accounting tool that shows no connection to the stocks’ market value. Principal. The term “principal” refers to a sum of money one borrows or invests. The face amount of a bond - the value printed on a stock or bond, or a debt balance. Principal does not encompass finance charges. Principal also describes an investor represented by a broker who executes trades on that investor’s behalf or an investor who trades for his or her own benefit. Principal also refers to a party affected by an agent’s decisions in a principal-agent relationship. Maturity. Maturity is the end of a bond’s life. In finance, maturity (or...
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...Guillermo Furniture Store Analysis FIN/571 - Corporate Finance December 17, 2012 Introduction Guillermo Furniture Store is a large manufacturer furniture store located in Sonora, Mexico. They specialize in the production of custom made furniture. Due to changes in the industry and local community Guillermo Furniture store along with other small competitors are beginning to notice a reduction in their businesses (Scenario: The Guillermo Furniture Store, 2012). The first of the changes that Mr. Navallez the owner of Guillermo Furniture Store and management team will be forces to deal with is an overseas competitor using high tech equipment and approach to not only enter but to also succeed within their market, and the second has to do with changes in the local economy. In an effort to determine an appropriate response to these changes, Mr. Navallez and his team has begun analyzing these changes that are affecting his business. Mr. Navallez does have a few ideas on how to move forward but will have to research more on the correct capital budgeting that is best for his organization. Capital budgeting is defined as the process of choosing the organizations long term capital investment strategy, this often consist of things like land, property and equipment (Emery, Finnerty, & Stowe, 2007). Alternatives With the changes the Mr. Navallez and his team are tasked to deal with there are some alternatives that they must decide on to adjust to the new market. They must...
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